Getting an IOSS number can be a key part of shipping orders to the EU. We’ve answered all the most frequently asked questions about them to help you understand how they work.
Even if you have a valid IOSS number, there are still a number of reasons your parcels can get held at customs. The most common reason is that customs paperwork is filled out incorrectly or is missing. Make sure that you or your customs declarant has the correct number and double-check the paperwork.
Occasionally, the EU customs database fails to recognise a valid IOSS number. It’s not a common problem, but it does happen. If it happens to you, you’ll likely need to provide evidence of your IOSS registration to get your goods through customs.
You can’t ship gifts or private-to-private shipments with your IOSS number. The IOSS number tells customs that:
Obviously, because you didn’t sell the gift, none of that would be true for the shipment. Misusing your IOSS number like this can get you struck from the scheme.
How much IOSS costs depends on the intermediary you choose. Here’s how much it costs to get registered for IOSS with us:
| Service | Pricing |
|---|---|
| IOSS Registration A one-off service to register your business for the Import One Stop Shop Scheme | £150 One-off fee |
| IOSS Filing Once you're registered for IOSS, you have to file an IOSS return every month - even if you don't have any eligible sales. We'll handle it all for you. | £85 a month Recurring fee |
The penalties for not following VAT rules vary by country. Most tax authorities also base penalty amounts on your behaviour and the scale of your non-compliance. For example, getting the maths wrong on a return is one thing, purposefully avoiding paying VAT is another.
For IOSS specifically, failing to meet the filing or payment deadline can result in penalties in multiple countries:
You get two official reminders for a missed deadline. Miss two deadlines in a row and don’t submit those returns, and you’ll be de-registered and excluded from IOSS.
You can only use IOSS to report shipments with an intrinsic value of EUR 150 or less. If the intrinsic value of your shipment is more than that, then you have two options:
Making your customer the importer of record makes them responsible for handling all the import VAT and duties. It’s generally a worse experience for your customer, so we’d only recommend doing it every now and then. If you’re regularly shipping orders that exceed the EUR 150 threshold, it might be time to look at registering for VAT.
IOSS is only for “low value” shipments with an intrinsic value of up to EUR 150. The Intrinsic Value of a shipment is the price your customers paid you for what you’re sending them. It doesn’t include shipping or insurance costs unless you included them in the price (if you displayed them separately, it doesn’t count). Taxes and any other charges (like Import Duty) don’t count towards the Intrinsic Value either.
If you’re not based in the EU, you’ll need an intermediary to register for IOSS. When they register you, your registration will be in the country where they hold their licence. For example, we’re registered in Ireland, so if you decide to register for IOSS through us, you will be too!
The country you’re registered in makes no difference to how IOSS works. You should pick your intermediary based on things like their customer service, not where they’re registered.
Don’t show your IOSS number on your website! Your IOSS number is unique to you. If someone else uses it to ship something, you’ll be liable for the VAT on that shipment.
Show your customer their local VAT rate included in the listed price. So, if you’re selling standard-rated hats to the UK, you’ll include 20% in the price your UK customer sees. When they get to checkout, you can break it out so they can see the rate applied and the amount they paid. This information has to be on their receipt, however.
You can only use IOSS for goods you’re importing into the EU (that’s why it’s the Import One Stop Shop). Holding stock that you intend to sell in an EU country requires:
OSS covers goods sold across international borders within the EU i.e. from France to Germany.
The key records you need to keep for IOSS are your sales data. That’s stuff like:
You need all this data per sale. Hold onto it for 10 years from the end of the year in which you made the sale. For example, you'll need to keep the sales data for March 2025 until the 1st of January 2036.
If you're audited by a tax authority, you'll need to be able to present all this information, so keep it secured and organised.
You can only use IOSS to report sales that meet all of these criteria:
Therefore, you can’t use IOSS to report sales to EU customers that you fulfil from within the EU. To hold stock in the EU, you need to register for VAT in the country where you’re storing your goods. You then either need to register for VAT in every country where you have customers, or for OSS in the country where your goods are stored.
You can have IOSS, VAT and OSS registrations at the same time, though, so you can fulfil orders from multiple locations if you want.
If you want to deregister for IOSS, you need to inform your intermediary as soon as you’re sure. You’ll need to file any remaining IOSS returns. Deregistering doesn’t release you from the record-keeping requirements, so make sure you have all your sales data stored securely.
If you change your mind and want to re-register, you’ll have to apply for a new IOSS number. They can’t be reinstated.
Your IOSS number is linked to your intermediary. That means to change intermediaries, you’ll have to be de-registered by your old intermediary and have your new one submit a new application. This can be problematic if your current intermediary is unresponsive – your new agent won’t be able to deregister you on their behalf.
